ES Homework wk1

ES Homework wk1 - Projected Sales Unit Per Unit Data:...

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Macaroon Sugar Buttercream Projected Sales Unit 500,000 800,000 600,000 Per Unit Data: Selling Price $0.80 $0.75 $0.60 Direct Materials 0.20 0.15 0.14 Direct Labor 0.04 0.02 0.02 Hours per 1,000-unit batch: Direct Labor Hours 2 1 1 Oven Hours 1 1 1 Packing Hours 0.5 0.5 0.5 Overhead Cost and Activity: Activity Overhead Cost Activity Levels DLH 2,400 hours Oven $210,000 1,900 oven hours Packaging 150,000 950 Packaging hours $360,000 1 Determine cost-driver rate for packaging costs. Packaging Cost $150,000 Packaging hours 950 Cost per Packaging Hours $157.89 per packaging hours Oven Cost 210,000 Oven Hours 1,900 Cost per Oven Hours $110.53 per oven hours 2 Using the ABC system, for the sugar cookie: Compute the estimated overhead costs per thousand cookies. Cost per Packaging Hours $157.89 Packaging hours 0.5 Packaging OH Cost per 1000 cookies $78.95 Cost per Oven Hours $110.53 Oven Hours 1 Oven OH Cost per 1000 cookies 110.53 Total Overhead Cost per 1000 sugar cookies $189.47 3 Compute the estimated operating profit per thousand cookies
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This note was uploaded on 07/09/2010 for the course ACCT 434 taught by Professor Private during the Spring '10 term at DeVry Fremont.

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ES Homework wk1 - Projected Sales Unit Per Unit Data:...

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